Australia Beer Market Size, Share, Growth Analysis Report and Forecast Trends (2025-2034)

Australia Beer Market Trends

The Australia beer market thrives due to its diverse consumer base, which drives demand for both mainstream and craft beers. The rapid growth of craft beer encourages innovation, delivering high-quality products that attract new customers. Beer holds strong cultural significance in Australia, ensuring consistent domestic demand, while advanced brewing techniques and export potential boost the country's global recognition. In March 2023, 4 Pines Brewing Co. launched a limited-edition series of barrel-aged beers, aged in whisky barrels for added depth and complexity, available at select venues and retailers.

The growing demand of the Australia beer market is fuelled by a broad variety of beer types, catering to diverse tastes. Health-conscious consumers are drawn to low-carb and gluten-free options, while beer's social significance strengthens its market position. With regulatory support and a robust distribution network, the industry remains competitive.

Australia Beer Market Growth

The growth of the Australia beer market is driven by the country’s reputation for producing premium beer, supported by high-quality local brewing ingredients. Australia’s global recognition for beer boosts both export growth and market positioning. A stable economy and rising disposable incomes fuel market expansion, particularly in premium segments. Beer tourism and sustainability efforts further enhance consumer appeal and contribute to the market's growth. According to the ABS, Australia’s gross disposable income reached 652,130 million AUD in June 2024, an increase from 623,610 million AUD in March 2024.

Opportunities in the Australia beer market are supported by its well-established brewing infrastructure, which facilitates both local and international beer production. The flourishing craft beer scene drives tourism and local engagement, further boosting sales. Increased investment in the sector sparks innovation and new brewery development. Consumer education on different beer styles promotes the demand for craft beers, while partnerships with the food industry encourage collaborations and increased consumption. In November 2023, Coopers Brewery launched a limited-edition pale ale to celebrate its 160th anniversary, available in major supermarkets and online for a limited time.

Australia Beer Market Insights

• Based on the 2022-2023 data from the ABS, Australia’s beer production was estimated to be 4.5 billion litres, covering both domestic brewing and beer produced for export markets.
• The Australian Trade and Investment Commission (Austrade) reported that the value of Australian beer exports in 2022 amounted to USD 200 million.
• Industry reports indicated that in 2022, nearly 18.5% of adults consumed over 10 standard drinks.

Industry News

January 2024

Western Australia’s Beerfarm brewery has announced plans for a nationwide expansion, focusing on enhancing its Metricup brewery kitchen to support increased production. This move aims to meet growing demand and establish Beerfarm as a significant player in the Australian beer market, further solidifying its position in the competitive craft beer sector.

June 2023

Victoria Bitter introduced its newly reformulated VB beer, launching "Victoria Bitter Xtra" with a bold new flavour. This innovation aims to attract a new generation of consumers while retaining the loyalty of traditional VB fans. The new variant marks an exciting evolution in the iconic beer brand’s product range.

Australia Beer Market Drivers

Craft Beer Boom

The Australia beer market has seen significant growth, driven by a shift towards craft beer, as consumers increasingly demand unique, high-quality, and locally produced options. Craft breweries are rapidly expanding, offering a range of innovative products with distinct flavours and brewing techniques. This trend is especially favoured by younger, health-conscious consumers who seek variety and authenticity. The growing beer demand for premium, small-batch beers has led to new breweries entering the market and established brands adapting their offerings. This development benefits local economies and fosters a sense of community. In May 2024, Pirate Life Brewing launched its Juicy IPA, featuring bold, tropical flavours to meet the demand for hop-forward craft beers. It is available in both cans and on draft in major cities across Australia.

Premiumisation of Beer

Premiumisation is a growing trend of the Australia beer market, with consumers willing to pay more for higher-quality, artisanal, and craft beer options. This shift is not limited to craft beers but also includes premium variants or limited-edition releases from established brands. Driven by higher disposable incomes, evolving tastes, and growing interest in speciality beer styles, consumers are seeking unique flavours, rare ingredients, and superior quality. Australian breweries are responding with innovative brews that cater to the demand for more complex and sophisticated flavours. In January 2024, Little Creatures launched The Ginger Beer, a premium alcoholic ginger beer crafted from natural ingredients, offering a smooth, spicy kick and a refreshing finish. It is available in selected outlets across the country.

Opportunities in the Australia Beer Market

Beer Tourism and Events

Beer tourism is increasingly playing a pivotal role in influencing the Australia beer market dynamics and trends, with craft beer enthusiasts travelling across the country to explore breweries, attend beer festivals, and immerse themselves in the local beer scene. Major cities and regions are hosting a variety of beer-related events, such as craft beer festivals, tasting tours, and brewery visits, attracting both domestic and international visitors. This trend not only promotes Australian beers but also stimulates the local economy, as tourists spend on accommodation, food, and drinks. By enhancing the appreciation of beer, beer tourism fosters community engagement and elevates the profile of Australian brews globally. The Melbourne Craft Beer Festival in November 2023, which attracted over 10,000 attendees, showcased over 50 breweries offering exclusive brews, playing a key role in driving beer tourism, and highlighting local brewing talent.

Market Restraints

The Australia beer market faces several restraints, including growing health concerns, which have led to a higher demand for low- and non-alcoholic options. Strict regulations and high excise duties increase production costs, while competition from both domestic and international brands pressures smaller craft breweries. Shifting consumer preferences towards premium and healthier beers necessitates innovation, driving up production costs.

Supply chain disruptions, environmental concerns, and fluctuating raw material prices also impact operations. Economic slowdowns may reduce consumer spending on premium beers, and cultural changes, particularly among younger generations moving away from alcohol, could lead to a long-term decline in demand. Breweries must adapt and innovate to remain competitive in this evolving market.

Market Breakup by Distribution Channel

• Supermarkets/Hypermarkets
• On-Trade
• Speciality Stores
• Convenience Stores
• Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Beer Market Share

By Type Insights

The growth of the Australia beer market is being driven by malt, which is a crucial ingredient in the brewing process, contributing to the flavour, aroma, and body of beer. In Australia, malt imparts richness and sweetness, enhancing the flavour profiles of beers like lagers, stouts, and ales. The use of high-quality local malts not only supports Australian agriculture but also promotes innovation within the brewing industry. In December 2022, Little Creatures launched their **Malt Master Series**, a limited-edition collection that highlights the malt-forward nature of craft brewing. This series features three distinct malt variations, designed to demonstrate how malt influences the flavour and aroma of beer. It is available exclusively at selected Australian craft beer bars.

According to Australia beer market analysis, ales dominate the market, with their wide range of flavours and styles making them particularly popular among craft beer enthusiasts. Ales offer brewers versatility, from pale ales to IPAs and stouts, catering to a broad range of tastes. The growing demand for unique, high-quality ales is supporting local breweries and contributing to Australia's thriving beer culture. In November 2023, **Balter Brewing Company** launched a new pale ale, **The New Wave**, which offers a crisp, clean taste with a focus on light bitterness and citrus notes. This balanced, punchy ale is available in cans and on tap at select venues.

By Production Analysis

The demand for the Australia beer market is being driven by macro-breweries, which play a key role in producing large-scale, mass-produced beers at competitive prices. These breweries benefit from economies of scale, ensuring their products are widely distributed and easily accessible across the country. Their focus on consistency and affordability makes beer readily available to consumers, helping to support national consumption. In December 2023, **Asahi Beverages** launched **Asahi Black Lager**, a premium variant aimed at strengthening its position in the Australian market. Brewed with roasted malt and unique flavours, the lager is available in major supermarkets and bars nationwide, targeting craft beer enthusiasts.

According to the Australia beer market report, microbreweries dominate the market. These small-scale producers offer a diverse range of premium beers, often focusing on local ingredients and sustainability. By fostering creativity, microbreweries support local economies and elevate Australia’s standing in the global craft beer market. In January 2024, Bridge Road Brewers introduced The Mac’s Red IPA, a premium red IPA that combines malt sweetness with bold hop bitterness. Brewed in small batches with local ingredients, it is available exclusively in independent bars and bottle shops across Australia.

By Flavour Insights

The Australia beer market continues to thrive as unflavoured beers remain a staple for consumers who appreciate the traditional taste and quality of beer without any added flavours. Their simplicity and classic appeal maintain strong consumer loyalty, while unflavoured beers also offer versatility in food pairings, appealing to a wider audience. In October 2023, Tooheys launched a new unflavoured lager called "Tooheys Pure", crafted for those who enjoy a smooth, lightly hopped experience. The brand markets it as the perfect refreshment with a straightforward, no-frills taste.

Flavoured beer is a significant trend in the Australia beer market, gaining popularity as consumers increasingly seek innovative and bold alternatives to traditional brews. These beers provide a wide range of flavours, from fruity to spicy, attracting younger, more adventurous drinkers. As consumer tastes evolve, flavoured beers present breweries with opportunities to stand out and innovate. In September 2023, Balter Brewing Company introduced their "Peach & Apricot IPA", which blends fruity sweetness with hoppy bitterness. The IPA taps into the growing demand for flavoured beers, offering a refreshing and distinctive combination of sweet fruit notes and crisp hop character.

Australia Beer Market Regional Insights

New South Wales Beer Market Regional Insights

New South Wales (NSW) is the largest beer market in Australia, driven by a wide-ranging consumer base and a thriving craft beer scene. The state benefits from robust retail networks and extensive distribution. In 2022, NSW accounted for over 35% of Australia's total beer sales, with significant growth in both the premium and craft beer sectors, according to the Australian Bureau of Statistics (ABS).

Queensland Beer Market Trends

As per the Australia beer industry analysis, Queensland’s beer market is increasingly dominated by rising demand for craft beers, particularly along the coast. Consumers are gravitating towards lighter, tropical beer styles that emphasise local ingredients and sustainability. In 2022, Queensland produced 19.5 million litres of beer, with craft beer sales rising by 11%, as reported by the Queensland Government's Department of Agriculture and Fisheries.

Western Australia Beer Market Dynamics

Western Australia (WA) boasts a robust beer market, with strong local demand. The state is known for its high-quality hops, and breweries there are focused on innovation and distinctive flavours. In 2022, Western Australia represented 9% of Australia's total beer production, with continued growth in craft beer, as outlined in the ABS’s 2022 National Beer Sales Report.

Competitive Landscape

The Australia beer market key players specialise in both premium alcoholic and non-alcoholic beverages. Alongside importing and distributing their products, these companies have broadened their portfolios to include a variety of soft drinks and other beverages. They have solidified their presence in Australia through strategic acquisitions, including the purchase of local breweries, and remain dedicated to delivering high-quality, innovative products that cater to the changing tastes of Australian consumers.

Key Industry Players

The Cooper Group (Coopers Brewery Limited): Founded in 1862 and based in Adelaide, South Australia, Coopers Brewery Limited is one of Australia’s oldest family-owned brewing companies. Famous for its premium ales, lagers, and stouts, Coopers is particularly well-regarded for its iconic cloudy beer, a staple in the Australian beer market.

Asahi Holdings Pty Ltd.: Established in 1987 and headquartered in Sydney, Asahi Holdings Pty Ltd. is the Australian arm of Japan’s Asahi Group. The company imports a variety of premium beers, including Asahi Super Dry, and has significantly expanded its presence in the Australian market through strategic acquisitions and brand growth.

Cascade Brewery Co.: Founded in 1832 in Hobart, Tasmania, Cascade Brewery Co. is one of Australia’s oldest brewing establishments. Known for iconic beers such as Cascade Premium Lager and Cascade Pale Ale, the brewery is a pioneer in Australian brewing, blending tradition with quality to create beloved local brews.

Lion Beer, Spirits and Wine PTY LTD. (Stone & Wood Brewing Co.): Lion Beer, Spirits and Wine Pty Ltd., part of Kirin Holdings was founded in 2009 and is headquartered in Sydney. It owns several well-known beer brands, including Stone & Wood Brewing Co., recognised for its craft beers and innovative approach to brewing within Australia’s dynamic beer scene.

Other key players in the Australia beer market report are Emencee Pty Ltd. (Balter Brewing Company), Lion Pty Ltd and Young Henrys, among others.

Recent Development

May 2023

Asahi Super Dry expanded its presence in the Australian market by introducing a non-alcoholic version of its renowned beer. This move caters to the increasing demand for alcohol-free options, allowing Australian consumers to enjoy the crisp, refreshing taste of Asahi without the alcohol content, contributing to market diversity.

January 2022

Coca-Cola Europacific Partners Australia completed its exit from Australian Beer Co., which was then fully acquired by Casella Family Brands. This transition gives Casella control over the brand’s direction, with the family-owned company now positioned to strengthen Australian Beer Co.'s presence in the local and international beer markets.